2010 budget

[Natty]

• Reversal of government decision to increase duties on cider by 10% above inflation confirmed. Will take effect at end of month.

• Planned tax-relief for video games industry to be scrapped.

• VAT to increase to 20% on 4 January next year. Will generate over £13bn a year of extra revenues.

• Two year public sector pay freeze on staff earning more than £21,000.

I can't lie I'm getting mad right now

[Mr Q]

Everyone from Obama, to think tanks and economic experts have said the cuts are over the top because everything is still uncertain, yet this millionaire c*nt thinks they are fine.

Banks could be better off as a result of George Osborne's tax changes, analysts said tonight, as the government warned that any attempt to avoid paying the £2bn- a-year levy would be quickly slapped down by the coalition.

Amid predictions that banks would look for ways to reduce their levy bill, the cut in corporation tax to 24% from 28% was expected to negate the impact of the levy on bank profitability.

A number of bank analysts calculated that some banks could benefit from Osborne's measures.

Deutsche Bank analysts had already said the budget was a "good outcome for banks" shortly after it was announced, but other analysts went further.

John-Paul Crutchley, an analyst at UBS, expected Lloyds and HSBC to benefit by 2012 because the cut in their corporation tax bill was larger than their hit sustained through the bank levy.

HSBC's banking analysts concurred. "We'd expect most domestically-orientated banks, for example Lloyds, to be better off after four years than they were pre-budget," the HSBC analysts said.

The calculations did not take account of the impact of the rise in VAT from 17.5% to 20% on 4 January, which affects banks because they are unable reclaim the tax. Accountants KPMG believe the VAT rise will cost banks £500m.

The government was preparing legislation to stop banks stocking up on items on which they pay VAT.

It wants to ensure that banks – and other businesses unable to reclaim the tax – are not issued with VAT invoices by suppliers before the date of the rate rise if the goods are not to be delivered until a later date.

Banks and their advisers were seeking clarity from the government as to whether the levy applied to their UK or global balance sheets and whether they would be subject to double taxation on their activities in other countries – notably France, Germany and the US – which are promising to introduce similar taxes.

Analysts reckoned banks would minimise the impact of the levy. Mark Jenkinson, of consultants Capco, said: "Any levy would encourage banks to find ever more innovative ways to move assets off their balance sheets.

"They could do this by setting up separate vehicles or by shifting operations to less-regulated financial entities such as hedge funds.

"This could create a new 'mirror' banking system – which would increase risk in the financial system."

Crutchley also expected banks to minimise their tax bills through "balance sheet management, group restructuring and deleveraging".

HSBC's analysts said: "The levy may end up undershooting [targets] if banks can adjust their balance sheets away from short-term wholesale funding."

The City regards the levy – set at 0.07% of eligible liabilities – as penalising those banks which rely on wholesale markets for their funding rather than deposits which is why RBS and Barclays were expected to be hardest hit.

Barclays was one of the biggest fallers in the FTSE 100 today, losing 3% while other banks were also lower, after receiving a fillip soon after the chancellor addressed MPs in Tuesday's budget.

The Treasury tried to argue that the bank levy and the corporation tax change were "two separate things".

The bank levy was intended to encourage the industry to reduce risk while the corporation tax cut was intended to show that Britain was "open for business", Treasury officials said.

Analysts also believe banks would use the levy as an excuse to hike the cost of borrowing for customers.

Goldman Sachs's analysts noted that the government acknowledged this in the budget.

"The budget highlights that the introduction of a bank levy may partially offset the fall in the cost of capital should banks pass on some or all of the levy in the form of a higher cost of corporate finance," the Goldman analysts said.

The Institute for Fiscal Studies, in its critique of the budget, also noted that because the levy was not applicable to capital held for regulatory purposes, banks could be encouraged to hoard cash and cut back on the size and number of loans they made to individuals and business.

The Treasury said "robust anti-avoidance measures" would be put in place should any evidence emerge of banks seeking to avoid paying tax and the government would take legislative action if necessary.

5 years of this sh*t, I don't even blame the conservatives, I don't expect anything more form them.

I hope the Lib Dems disintegrate as a party

Makes me angry.

[Flojo]

Females who voted Conservatives are now experiencing something that alluded had them before.

The Moc is an epic experience.

[Skola]

Females who voted Conservatives are now experiencing something that alluded had them before.

The Moc is an epic experience.

[Captain Planet]

Females who voted Conservatives are now experiencing something that alluded had them before.

The Moc is an epic experience.

lmao

[djbmc]

EVERYONE WITH MORE THAN A 10 SECOND ATTENTION SPAN SHOULD READ THIS:

http://www.noshockdoctrine.org.uk/?page_id=135

It's a good read on why all these drastic cuts to the public sector may not be a good thing.

[O.Man]

lols it's jokes mans telling us about sacrifices to make when theres twelve blacked out range rovers behind him in the press speech

[Drift]

EVERYONE WITH MORE THAN A 10 SECOND ATTENTION SPAN SHOULD READ THIS:

http://www.noshockdoctrine.org.uk/?page_id=135

It's a good read on why all these drastic cuts to the public sector may not be a good thing.

good article.

[gemma]

they said they're gonna sell the student loan book

i just hope the interest rate stays the same

[VENOM]

*edit* re read it, the housing benefit part makes no sense to me, how can they be lowering the amount for a 1 bedroom flat to 280 a week when i dont get anywhere near that for a 2 bedroom and i have to pay some myself? 2bh its not that big a deal for me, but its unfair for the people it is affecting, as if they dont have lives and families to support aswell.

yeh well who cares. its about time u get off your arse and do some work and contribute into the national kitty

rather than just take take take.

least know u know belts are tighter govt wise u will think 2x before getting a pitney with little qualifications in life.

[Mr Q]

These cuts are very necessary. Boiled down to it's simplest terms, the governments been spending way more money than it's been raising.

These cuts will get blamed for a double dip recession even though it's likely to be on the cards anyway.

A smaller government can only be a good thing.

When 60 leading economists say differently, I don't really see how the cuts are necessary. Government don't want to listen to anyone.

/

What annoys me most about people who some how blame Labour for the GLOBAL recession, is that when the economy was booming, everyone was quick to enjoy the the fruits of it, and now its oh, its Labours fault etc etc.

[djbmc]

These cuts are very necessary. Boiled down to it's simplest terms, the governments been spending way more money than it's been raising.

These cuts will get blamed for a double dip recession even though it's likely to be on the cards anyway.

A smaller government can only be a good thing.

When 60 leading economists say differently, I don't really see how the cuts are necessary. Government don't want to listen to anyone.

/

What annoys me most about people who some how blame Labour for the GLOBAL recession, is that when the economy was booming, everyone was quick to enjoy the the fruits of it, and now its oh, its Labours fault etc etc.

i agree but labour put all our eggs in one basket with focusing on making the city of london one of the financial centres of the world.

[Guest Triple XXX]

i see that

and also a few economists predicted that, but all they cared about was catering to the financial market, gettin dinner speeches n promisin no more boom n bust

[Captain Planet]

These cuts are very necessary. Boiled down to it's simplest terms, the governments been spending way more money than it's been raising.

These cuts will get blamed for a double dip recession even though it's likely to be on the cards anyway.

A smaller government can only be a good thing.

When 60 leading economists say differently, I don't really see how the cuts are necessary. Government don't want to listen to anyone.

/

What annoys me most about people who some how blame Labour for the GLOBAL recession, is that when the economy was booming, everyone was quick to enjoy the the fruits of it, and now its oh, its Labours fault etc etc.

i agree but labour put all our eggs in one basket with focusing on making the city of london one of the financial centres of the world.

But do you know whats dangerous?

A government that got into power by basically exaggerating a story

Now they're in power they are forced to act as if the exaggeration true

It's simple economics the Tories will f*ck up the development of the country.

[Heero Yuy]

Tories trying to say man will be working till 75 to retire

PMSL

[Guest Lemons]

Tories trying to say man will be working till 75 to retire

PMSL

LOL @ living to 75.

[Heero Yuy]

lol @ trying to log onto a computer at them ages, dementia setting in and im trying to remember my password

[Queen Bee]

*edit* re read it, the housing benefit part makes no sense to me, how can they be lowering the amount for a 1 bedroom flat to 280 a week when i dont get anywhere near that for a 2 bedroom and i have to pay some myself? 2bh its not that big a deal for me, but its unfair for the people it is affecting, as if they dont have lives and families to support aswell.

yeh well who cares. its about time u get off your arse and do some work and contribute into the national kitty

rather than just take take take.

least know u know belts are tighter govt wise u will think 2x before getting a pitney with little qualifications in life.

Was i complaining? No. I just said it makes so sense.

Infact i don't even know why i'm responding to you you f*ck*ng faggot

[E.A.S.E]

These cuts are very necessary. Boiled down to it's simplest terms, the governments been spending way more money than it's been raising.

These cuts will get blamed for a double dip recession even though it's likely to be on the cards anyway.

A smaller government can only be a good thing.

When 60 leading economists say differently, I don't really see how the cuts are necessary. Government don't want to listen to anyone.

/

What annoys me most about people who some how blame Labour for the GLOBAL recession, is that when the economy was booming, everyone was quick to enjoy the the fruits of it, and now its oh, its Labours fault etc etc.

pos

[E.A.S.E]

*edit* re read it, the housing benefit part makes no sense to me, how can they be lowering the amount for a 1 bedroom flat to 280 a week when i dont get anywhere near that for a 2 bedroom and i have to pay some myself? 2bh its not that big a deal for me, but its unfair for the people it is affecting, as if they dont have lives and families to support aswell.

yeh well who cares. its about time u get off your arse and do some work and contribute into the national kitty

rather than just take take take.

least know u know belts are tighter govt wise u will think 2x before getting a pitney with little qualifications in life.

Was i complaining? No. I just said it makes so sense.

Infact i don't even know why i'm responding to you you f*ck*ng faggot

well said

[Mr Q]

Tories trying to say man will be working till 75 to retire

PMSL

LOL @ living to 75.

Dies. f*ck the tories, how can they want to raise the pension age. .

Oi, Lemons where you leaving to, might have to plan an escape route as well.

[Grafter]

talkin about this on question time now

[Captain Planet]

Vince Cable has fully backtracked on his philosophy...

However, Cable has been criticised by some, Conservatives particularly, for 'flip-flopping'^[12] on issues in connection with the crisis. For example, he is accused of criticising the Government's policy of 'quantitative easing', when in January 2009 he used the phrase "the Robert Mugabe school of economics",^[13] while in March 2009 he said, "directly increasing the amount of money flowing into the economy is now the only clear option".^[14] He has responded to deny this claim, saying that he had been warning of the dangers if QE was not managed properly,^[15] and the Liberal Democrats also have responded that he was making the point that QE "needed to be managed with a great deal of care".^[16]

Wiki

[TF S4DK]

"The Liberal Democrats used to stand up for other people's jobs, now they only stand up for their own."

Harriet Harman's war bars to the "fig leaf's".

[Queen Bee]

lol they aren't actually stopping benefits though are they, sorry luv